Silver plummets to new yearly lows

February has been a wild ride for precious metals, with silver experiencing significant ups and downs. Despite starting the month with impressive gains and reaching its highest levels since April 2022, the metal has seen almost daily bearish developments. This has resulted in a new yearly low, with silver trading below $21.9 per ounce in the European morning session.

The latest drop can be attributed to the bearish breakout from the rectangle formation (shown in green) that had been restricting trading activity in December and January. Despite the morning's weakness, however, the metal saw a bounce during later trading hours. This shouldn't come as a surprise considering that the current price is at the 38.2% Fibonacci retracement of the uptrend that began in September. It's worth noting that the 38.2% Fibonacci level is often a key point for corrections to occur.

In the long term, the outlook for silver isn't positive. In my opinion, we should expect to see new yearly lows soon. In the short term, however, an upswing is possible. All that is needed is for today's candle to close at a high. Let's see if buyers have what it takes to drive prices up.